(RTTNews) - The major European index futures are pointing towards substantial weakness in the European markets on Monday. However, the U.S. stock futures have surged, pointing towards a higher opening on Wall Street after last week’s steep sell-off. Additionally, investor sentiment is likely to be positive after a group of European government leaders agreed Sunday to underwrite inter-bank lending and help struggling finance companies avoid a collapse. The Asian markets are trading mixed on Monday.

Oil prices have rebounded in the Asian session Monday after the contract for November settlement plunged Friday by $8.57 to settle at $74.09 a barrel on the ICE Futures exchange. At 11:56 p.m. ET, oil was quoted at $75.73, up $1.64.

On the economic front, traders in France await the release of the current account balance for August, while traders in the U.K. look forward to the release of the producer prices index, the RICS house price balance report and, BRC retail sales data. The investors have little economic reports to digest on Monday.

U.S. stocks closed Friday’s volatile session mixed, as traders continued to express concerns about the outlook for the global economy as a result of the current credit crisis. The Nasdaq closed up 4.4 points or 0.3% at 1,649, while the Dow closed down 128.0 points or 1.5% at 8,451.2 and the S&P 500 shed 10.7 points or 1.2% to finish at 899.2.

In the Asia-Pacific region Monday, the Japanese market remained shut on account of a public holiday. China’s Shanghai Composite index is down 3.4%, but South Korea’s KOSPI is advancing 2.6%, Hong Kong’s Hang Seng is gaining 3.1%, and Australia’s All Ordinaries indexes is climbing 4.2%.

The European markets fell for the fifth day on Friday amid growing concern that the worsening credit crisis will send the global economy into recession. The FTSEurofirst 300 index of pan-European blue chips plunged 7.6% to 851, its lowest close since July 2, 2003, and the narrower DJ Stoxx 50 index plummeted 8.6% to 2,094.

In Asia Monday, the euro strengthened against the pound, but it declined against the dollar and the yen. The euro slipped to 134.02 against the yen and 1.3455 against the dollar, but it rose to 0.7963 against the pound. The 15-nation currency finished Friday’s European session at 134.10 yen, $1.3466 and 0.7927 pound.

In Europe, Banca Italease may rise after the Italian leasing company approved a joint venture with a unit of Germany’s DZ Bank AG. The German bank will buy a 60% stake in the partnership for EUR 369 million. Bayerische Motoren Werke may gain after the carmaker reportedly stuck to its forecast for record car sales and a profit margin of at least 4%.

BNP Paribas is likely to react to a report that as part of the Fortis deal the Paris-based bank will issue 9 billion euros worth of shares for the Belgian state at 68 euros a share. Carrefour may decline on the back of a report that Europe’s largest retailer might not meet its target of opening 60 new franchise stores in Belgium due to the global financial crisis.

Commerzbank is likely to rise following a report that Germany’s second-biggest bank won a record 183,000 new clients for its private customer business in the third quarter. Daimler is likely react to a rumor that General Motors is in early talks with Chrysler LLC, which is 19.9% owned by Daimler, about a merger or partnership.

HCI Capital may fall after the German manager of closed-end funds said that it would lose money in 2008 after the stock-market crash hurt sales in October. Royal Bank of Scotland Group may rise on speculation that U.K. Prime Minister Gordon Brown’s government is set to buy majority stakes in Royal Bank of Scotland and HBOS to contain the worst financial crisis since the 1930s.

Royal Philips Electronics is scheduled to report earnings. Swedbank may fall after Moody’s Investors Service cut its long-term senior debt and deposit-credit rating to Aa3 from Aa2. Unilever, the world’s second-largest consumer- products maker, may rise after it said that it would invest EUR 100 million in a Russian production plant.

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Posted in Categories: Australia, Economy, Eurozone, Japan, Releases, USA.

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